Five years ago, nothing much came between the Calvin Klein Cosmetics DC and a looming operational disaster. But a flashy pick-to-light system brought some much-needed direction to the order pickers' daily rounds.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
When Mark Farrell first arrived at Calvin Klein Cosmetics in 1998, he realized he was looking at a candidate for a serious makeover. But the subject wasn't a customer in need of some eyebrow shaping, a little contouring powder or a new color palette; rather, it was an order-picking process that had fallen sadly behind the times.
At that time, the company, now a subsidiary of Unilever Cosmetics International (UCI), was about to launch a new product line, Calvin Klein's color enhancing makeup and skin care products. Farrell, who had just been hired as the company's operations manager, knew that if he didn't do something fast, the 120,000-square-foot Mt. Olive, N.J., distribution center would almost certainly be overwhelmed. "When I started with UCI," he says, "we were picking these kinds of products manually, with paper." But paper wasn't going to cut it when orders for the new cosmetics started pouring in.
What turned things around in short order was a flashy "pick-to light" system from Acworth, Ga.-based Kingway Material Handling, which provided beacons mounted in the storage racks to direct the order picking. In a pick-to-light operation, a computer electronically reads the order pick tickets, determines the best picking sequence and transmits signals to lights on the storage racks. Those flashing lights then guide workers to the items to be picked and indicate the quantity needed. Once the items have been selected, the order picker presses a button so that the computer can verify that the order was picked correctly.
Kingway's system, called Computer Assisted Picking System (CAPS), is designed specifically for operations like UCI's that require split-case—as opposed to full-case—picking of medium-and fast moving items. In recent years, customers like the Dillards and Saks Fifth Avenue department store chains have stepped up the frequency of t heir orders and begun ordering smaller quantities than they did in the past. Today, split-case orders make up almost three-quarters of UCI's domestic order volume.
That only makes the DC manager's job harder. Picking split-case orders accurately requires more time and more labor than picking full cases. Accuracy is an issue too. In the cosmetics business, product packaging for different stock-keeping units tends to be similar, making it tough to distinguish one from the next and making it all too easy for pickers to select the wrong item.
A pick-to-light system addresses those problems: UCI reports that its picking accuracy is now greater than 99.99 percent, provided that the pick locations are replenished promptly and correctly. Productivity has soared, too. The initial implementation of CAPS doubled picking productivity, the cosmetics company reports, and enhancements made in 2000 resulted in another 50-percent improvement. Today, says Farrell, "there's never idle time for the pickers. They're always productive. But without the pick-to-light system, I don't know how we'd do it."
Easy picking
There's no question that CAPS makes workers' lives easier: Since the pick display is mounted and stationary, the picker doesn't have to carry a piece of paper, pencil, RF terminal or other data-collection equipment. Pickers quickly get into the rhythm of identifying which pick-faces contain the items needed for the next order, picking the correct quantity, and pushing the display button to indicate the item has been picked.
Errors are down, too. "We don't see the number of picking errors that we did before because the systemen ables pickers to stay focused on the product and quantity they need to pick," says Farrell. "Under the old sys tem, the pickers had to carry pick slips, drop their eyes to read them, and then l ook up again at the product; it was easy to make mistakes. Now, with the pick-to-light system, pickers can use both hands for order selection."
Not only has CAPS reduced SKU picking errors, but it has made quantity picking errors a thing of the past. CAPS passes each order over an inmotion scale that can determine the expected weight for the designated quantity of items for each order. If the scale detects a weight discrepancy outside of the allowed tolerance, the system kicks the order to a side conveyor for auditing.
"We did a study with our pick-to-light system,and whenever a box is kicked out it's almost always a case error," says Kevin Whalen, a system engineer at UCI. "We never have SKU substitutions with the pick-to-light system."
Adjustable CAPS
Of course, it's one thing to design a system that handles a reasonably predictable workload and quite another to set something up that can accommodate wide fluctuations in activity. UCI says CAPS has proved both flexible and scalable. When ever UCI has run up against a change in distribution requirements, Kingway has been able to modify CAPS to meet the challenge. For example, when the Mt. Olive DC began to stock more SKUs, forcing the company to start using all available pick locations, the facility encountered a problem with the pick locations nearest the ground. In the typical pick-to-light configuration, the light display is mounted below the corresponding pick-face. But with this configuration, the display for the floor locations would be close to the pickers' feet and leave the lights exposed to damage.
In a project dubbed the "color initiative" because it dealt with Klein's color-enhancing line of cosmetics, Kingway devised a way to mount two sets of light displays on one shelf about waist-high. The two sets of light displays were then individually color-coded to avoid confusion: red lights for product to be picked above the display, green lights for item s below. Without this modification, UCI would have been forced to abandon the pick locations at the pickers' feet.
Kingway has helped UCI out in other ways as well. Three years ago, the vendor scaled down UCI's pick displays from the 73/4 inch standard to 31/2 inches, enabling UCI to increase the number of pick locations per shelf from six to 12, doubling the number of picks per aisle.
"They wanted to set up an individual pick line for what they had forecast to be fast-moving, very small products," says Ralph Henderson, national sales manager for Kingway. "The challenge was the high density; they needed to put 10 items across in a carton shelf flow rack. In the past we couldn't do that because the electronic components were too big. So we redesigned that piece of hardware to accommodate their request."
As for the system's inner workings, the CAPS software resides on a Unix server that is interfaced with UCI's Trendsetter warehouse management system (WMS), which was developed by Computer Task Group's Melbourne, Fla.-based logistics division. With help from the WMS, CAPS is able to establish multiple pick locations for a single SKU when needed. This feature is especially helpful during a new product launch when demand for an item can be extremely high. Because it has a choice of pick locations for a single item across several zones,CAPS is able to balance the workload for picking that item. When an order is dropped, CAPS receives a message telling it the best location from which to pick the product in order to avoid congestion at a single pick location.
Time and temps
Because CAPS requires little training, it's an easy matter for the Mt. Olive DC to bring in temporary workers during peak periods."Other UCI DCs that don't use a pick-to-light system spend valuable time bringing temps up to speed," says UCI's Len Westerman, former project manager for CAPS. "We can bring in temps and not miss a beat."
The CAPS setup even helps UCI maintain package integrity. In the cosmetics industry, image and packaging are everything. If a box is even slightly crushed, consumers won't buy it. According to Farrell, other material handling shelving solutions - like A-frames - that facilitate picking productivity but require stacking of product don't measure up to pick-to-light solutions when it comes to ensuring package integrity.
"We're very conscious of our packaging," says Farrell. "You simply should not dispense fragrances and some cosmetics through an A-frame, which I've seen companies try to do, because you risk damage to the packaging. Pick-tolight is the best solution for our products."
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."
Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.
Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.
The tool leverages data from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) to project scores to varying locations using those eight category indicators: tropical cyclone, river flood, sea level rise, heat, fire weather, cold, drought and precipitation.
The Climate Risk Scores capability provides indicator risk projections for key natural disaster and weather risks into 2040, 2050 and 2100, offering several forecast scenarios at each juncture. The proactive planning tool can apply these insights to an organization’s systems via APIs, to directly incorporate climate projections and risk severity levels into your action systems for smarter decisions. Climate Risk scores offer insights into how these new operations may be affected, allowing organizations to make informed decisions and mitigate risks proactively.
“As temperatures and extreme weather events around the world continue to rise, businesses can no longer ignore the impact of climate change on their operations and suppliers,” Jon Davis, Chief Meteorologist at Everstream Analytics, said in a release. “We’ve consulted with the world’s largest brands on the top risk indicators impacting their operations, and we’re thrilled to bring this industry-first capability into Explore to automate access for all our clients. With pathways ranging from low to high impact, this capability further enables organizations to grasp the full spectrum of potential outcomes in real-time, make informed decisions and proactively mitigate risks.”